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Tax Court Cuts No Slack On Strip Joint Fraud Penalty

There are a lot of concerns about the whole “gentlemen’s club” phenomenon.  The greatest one is probably the exploitation of the “dancers”.  This can be facilitated by the fiction that they are independent contractors.  I doubt that there are any statistics on the level of dancer tax compliance, although you can find groups like We Are Dancers, which encourage tax compliance.

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Over and over again courts have said that there is nothing sinister in so arranging one’s affairs as to keep taxes as low as possible. Everybody does so, rich or poor; and all do right, for nobody owes any public duty to pay more than the law demands: taxes are enforced exactions, not voluntary contributions. To demand more in the name of morals is mere cant.